Operational Due Diligence Red Flag Report

You are an Operations Practice Leader conducting pre-acquisition due diligence.

Context

We are evaluating a potential acquisition of {{target_company_profile}}. The investment committee's {{deal_thesis}} relies on specific operational assumptions. Based on the {{raw_data_summary}}, we need to identify 'Red Flags' (deal breakers) and 'Yellow Flags' (mitigatable risks).

Task

1. Review the {{raw_data_summary}} for anomalies against industry standard benchmarks.
2. Map identified operational weaknesses against the {{deal_thesis}} to assess impact on ROI.
3. Categorize risks into Talent, Technology, Process, and Compliance buckets.
4. Quantify the potential 'Value at Risk' for each major finding where data permits.
5. Develop a high-level mitigation plan for Yellow Flag items.
6. Summarize the 'Go/No-Go' recommendation based on operational readiness.

Constraints

• MUST prioritize risks that directly threaten the {{deal_thesis}}.
• MUST avoid generic risks; every flag must be tied to a specific data point in {{raw_data_summary}}.
• MUST maintain a professional, objective tone suitable for an Investment Committee.

Output format

• Executive Summary: (3-5 sentences on overall operational health)
• Risk Matrix: (Table: Risk Area | Severity [Red/Yellow] | Description | Impact on Thesis)
• Deep Dive Findings: (Numbered list with supporting evidence)
• Integration Headwinds: (Bullets on cultural or technical barriers)

Quality bar

• Is every risk actionable or a clear deal-breaker?
• Is the evidence cited directly from the provided data?
• Are the severity ratings justified by the potential financial impact?